veSPECTRA

Locked veSPECTRA, where 've' stands for "vote-escrowed," allows holders to influence the parameters and evolution of the Spectra protocol through an on-chain voting process.

veSPECTRA

• Contract Address: 0x6a89228055C7C28430692E342F149f37462B478B

• Network: Base Network

Utility

The veSPECTRA inherits veAPW’s following characteristics:

• Entitlement to protocol earnings (3% of the yield generated by the YTs) and emissions

• Voting on Spectra Governance proposals

New characteristics following SIP3:

• A 4-year ve(3,3) locker model, following veAERO/veVELO implementation.

• veSPECTRA earn 80% of protocol revenues

Following the successful ve(3,3) lockers model of Aerodome/Velodrome, veSPECTRA holders can earn protocol revenues and third-party incentives in exchange for help directing SPECTRA emissions to pools.

How to obtain veSPECTRA?

veSPECTRA can be obtained by locking SPECTRA from 1 week to up to 4 years via Spectra's App.

veSPECTRA is non-transferable by design.

SPECTRA holders can create multiple locks, allowing for more efficient governance participation.

Rewards Boost

By locking SPECTRA in the Voting Escrow contract (veSPECTRA), you can boost your rewards. The boost mechanism allows you to enhance the rewards you earn based on the amount of veSPECTRA you hold.

• Minimum Boost: Achieved when you have no veSPECTRA.

• Maximum Boost: Achieved when you have locked enough veSPECTRA. See below for details on how to get the maximum boost.

When Is the Boost Applied?

The boost is applied automatically—there’s nothing you need to do manually.

• Liquidity Movements: Each time liquidity is added or removed from a pool, we snapshot the balance of veSPECTRA for all Liquidity Providers.

• Boost Duration: The boost remains the same until a new liquidity event occurs in the pool.

How Is the Boost Calculated?

The boost mechanism calculates the earning weight of the liquidity you provide to pools. If you have sufficient voting weight (veSPECTRA), you can boost the earning weight of your liquidity by up to 2.5x.

Example: If you have a boost of 2.5x and deposit $10,000 of value into a pool, your rewards will be calculated as if you have $25,000 of value in the pool.

Boost Calculation Formula

$$B = \min\left(2.5, \ 1.5 \times \frac{v}{V} \times \frac{D}{d}\right) + 1$$

with:

• $B$ : the rewards boost (between 1 and 2.5).
• $d$ : The value of your deposit in the pool (in USD).
• $D$: The total value deposited in the pool (in USD).
• $v$: The amount of veSPECTRA you hold (vote weight).
• $V$: The total veSPECTRA in the system (total vote weight).

How to Obtain the Maximum Boost

To achieve the maximum boost of 2.5x, your share of veSPECTRA voting power must be at least equal to your share of LP tokens in the pool.

• Example:

  • If you own 30% of the LP tokens in a pool, you need to hold at least 30% of the total supply of veSPECTRA.

  • This means your veSPECTRA balance should be 30% of the total supply of veSPECTRA .

In Other Words

Your veSPECTRA holdings should be proportional to your liquidity share in the pool to maximize your boost.